FONTANA: Two warehouses to be built

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Commercial property investor CT Realty has purchased more than 17 acres in Fontana and has announced plans to build two industrial buildings on the land, according to a statement.

An affiliate of CT Realty paid $7.8 million for the properties, which were purchased from four separate individuals. The plan is to put up a 212,000-square-foot distribution building and a 146,000-square-foot facility at the intersection of Jurupa and Catawba avenues.

The project is expected to cost about $28 million, with construction slated to begin in November. Carter Ewing, managing partner of Aliso Viejo-based CT Realty, said the two buildings will be marketed to prospective tenants for lease terms in the five- and seven-year range.

Ewing said the plans evolved that way because of a perceived shortage of warehouse space in that size range.

There are declines in available industrial space almost across the board. The quarterly report from Voit Commercial Real Estate Services found that the overall vacancy rate for industrial space in San Bernardino and Riverside counties was 5.6 percent at the end of the second quarter.

Also, the users are taking up occupancy of this warehouse space not seen since the start of the recession. That, in turn, is driving up lease rates and giving property owners more revenue for their properties.

Nevertheless, Voit analysts are “cautiously optimistic” about the market and anticipate more gains in the future as long as jobs continue to be created and consumer confidence keeps growing.

Kmart building sold

A single-tenant retail building in Hesperia that housed Kmart has been sold for $5.25 million, according to a statement from Progressive Real Estate Partners, which represented seller The Burokas Family Trust.

The property is part of the Midtown Square Shopping Center, which includes a Stater Bros. and an Orchard Supply Hardware.

The buyer, a private real estate investment company, purchased the building as part of a 1031 exchange.

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